|

Is America headed for a post-apocalyptic currency collapse?

Just when it seemed as though America may be turning the corner after months of lockdown… just when it seemed as though we were on a path to reopening and gradually returning to normalcy… just when the prospects of panic-induced social unrest seemed to be behind us…

…America’s cities erupted into flames.

Antifa and BLM-organized rioting, looting, violence, and mayhem have pushed cities across the country into pandemonium. Even if the insurrections are soon quelled – as President Donald Trump promised to do in a speech in front of the White House on Monday – the consequences won’t soon go away.

Some epidemiologists seized on the protests to predict a spike in the spread of the coronavirus due to the gathering of large crowds. They claim the “flattened” curve could begin to steepen all over again.

The “experts” may be wrong, as they have often been during this outbreak. The nationwide lockdowns and social distancing rules (beyond isolating the infected and protecting vulnerable populations such as those in nursing homes) may prove to have been “overkill.”

The response to pandemic fears, including and especially the economic consequences, certainly contributed to driving some people over the edge. Pent up stress, frustration, boredom, alienation, fear, and other symptoms of cabin fever created the potential for a social conflagration.

Jeremy Boreing of the Daily Wire suggests that social chaos erupted in an 8-step process:

  1. Instill fear
  2. Lock people in their houses
  3. Drive tens of millions out of work
  4. Remove the pressure valves: Sports, Concerts, Bars, Theaters, Lunch with Friends...
  5. Close the churches
  6. Dehumanize through masking the healthy
  7. Wait
  8. Strike match...

The “match” was the death of a suspect named George Floyd. He had fentanyl and other drugs in his system and may have been charged with a relatively minor crime. A police officer appeared to use excessive force in pinning him down. Clearly, Floyd’s death and the police actions that led to it deserved to be investigated.

But the establishment media decided, without evidence of racial bias by the officer – and in contradiction to evidence that shows black arrestees are actually less likely to be killed by white cops – to make Floyd’s death all about the incendiary issue of race. Time will tell if race played a role, but most agree the video evidence show the officer in the wrong.

And so the fire was lit.

The American Institute for Economic Research notes, “Many of the overly confident planners who hatched this disaster are hunkered down in hiding. People are unlikely ever to hold the mainstream media in high regard.”

Sowing the seeds of hatred and whipping up already anxious populations into a frenzy over a fabricated narrative (“racism”) of a single person’s death means many more lives that should have mattered will now be lost to senseless violence.

The article concludes pessimistically, “The best laid plans: inspired by myopic modelers, eschewing of expert opinions of dissident scientists, disregarding of essential rights, fueled by media fabrications and irresponsibility, imposed by governments at all levels. It’s a new chapter of The Road to Serfdom.”

Some economists are predicting a death blow to small businesses that were already under unprecedented financial strain. If they weren’t ransacked, looted, and destroyed by hooligans, they will feel the macro effects of urban decline and flight, plummeting consumer confidence, falling property values, and worsening budgetary crises for state and local governments.

But don’t worry, Walmart, Amazon, Google, JPMorgan Chase, and all their close friends in Washington, D.C. will be just fine. In the event that any “too big to fail” entity runs into trouble, it will get bailed out by the Federal Reserve.

The demands for bailouts going forward will only accelerate. Lockdown relief is still being dispensed, and soon “riot relief” will come too.

The currency crisis will also come – perhaps later this year, perhaps further out in time.

Admittedly, most of us in the sound money camp have been surprised at how resilient the Federal Reserve Note has been for so long. But the world’s primary reserve currency has never had to weather a storm quite like the one we are in now.

No government can borrow into oblivion and no currency can be printed into oblivion without that currency losing credibility and purchasing power.

If you don’t own hard money (gold and silver) now, what are you waiting for? In the post-apocalyptic America that we seem to be heading toward, precious metals may be one of the only things you can count on.

Stock up on gold and silver, guns and ammunition, and non-perishable foods plus household essentials while you still can!

When the social fabric unravels, being self-reliant becomes absolutely essential. Calling 9-1-1 during an emergency may not do much good if the police, fire departments, and ambulances are all overwhelmed.

If you store you precious metals at home rather than a secure depository, a well-concealed fireproof safe to store precious metals will protect them in the event of a home invasion.

Most burglars look for obvious things to grab quickly and then take off to limit their risk of apprehension. A decoy safe with nothing of real value inside that placed out in the open can misdirect a thief’s time and efforts while your real safe is hidden from view (and ideally built into a strong structural element such as concrete).

The same supposed leaders in positions of power who are failing us now can be expected to continue failing. The elites who control the media and both political parties seem to be operating as if wrecking the country is their goal – a point Tucker Carlson powerfully drove home on his Fox News show Monday.

It’s time to get prepared both personally and financially if you’re not already.

Riots helping US economy get a V-shaped recovery? Don't miss this article by Joseph Trevisani!


To receive free commentary and analysis on the gold and silver markets, click here to be added to the Money Metals news service.

Author

Stefan Gleason

Stefan Gleason

Money Metals Exchange

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group.

More from Stefan Gleason
Share:

Editor's Picks

GBP/USD turns negative; slips back to 1.3530

GBP/USD comes under pressure and weakens toward the 1.3530 zone on Tuesday. Cable thus leaves behind two daily upticks in a row and retreats further from Monday’s multi-week tops past 1.3570 following humble gains in the Greenback and disheartening UK jobs data.

EUR/USD comes under pressure near 1.1570

EUR/USD could not sustain the earlier bullish attempt toward the proximity of 1.1600 the figure, coming under fresh downside pressure and revisiting the 1.1580-1.1570 band as the NA session draws to a close on Tuesday. The better tone in the US Dollar in the latter part of the day weighs on the pair amid steady volatility in the Middle East. Looking forward, the release of the FOMC Minutes takes centre stage on Wednesday.

Gold remains offered around $4,350

Gold accelerates its daily correction and revisits the $4,350 zone per troy ounce on Tuesday. The precious metal sets aside two daily advances in a row and follows the absence of direction in the US Dollar, declining US Treasury yields across the curve and continuous uncertainty in the Middle East crisis.

HYPE extends gains as Hyperliquid urges SEC action on pre-IPO futures framework
Hyperliquid (HYPE) retains a broad bullish outlook, trading above $59.00 on Tuesday. The decentralized exchange (DEX) native token marks the second consecutive day of gains as bulls return, eyeing a short-term breakout above $60.00.
Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?
Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.